To: Members of the Castle Rock Water Commission
From: Mark Marlowe, P.E., Director of Castle Rock Water
Rick Schultz, Water Efficiency Supervisor
Linda Gould, Water conservation Technician
Title
Resolution Approving the 2022 Conservation Rebate Incentive Program
Town Council Agenda Date: Feb 15, 2022
Body
________________________________________________________________________________
Executive Summary
The purpose of this memorandum is to request Town Council approval by resolution of the 2022 Conservation Rebate Incentive program (Attachment A). The program is proposed to be funded at a level of $145,000 again this year with rebates being awarded in any of the proposed categories below on a first come first served basis until the funds have been exhausted.
The core rebate categories remain intact, with only a few proposed changes for 2022. Staff is recommending the following changes to the residential ColoradoScape Renovation rebate, Non-residential ColoradoScape Renovation rebate, and the Smart Irrigation Controller rebate.
The proposed rebates and recommended changes for 2022 are:
• Residential ColoradoScape Renovation - Raise the minimum turf removal required to 400 square feet or entire front yard. Increase the rebate amount per square foot from $1.10 to $1.20, amount not to exceed $1,800.00.
• Non-Residential ColoradoScape Renovation - Increase the rebate amount per square foot from $1.10 to $1.20, amount not to exceed $18,000.00.
• Smart Irrigation Controller - Continue to offer a 50% rebate. Reduce the maximum rebate allowed from $300.00 to $200.00.
• Rotary Nozzle Retrofit Rebate - Up to $5 per nozzle; maximum rebate of $2,000 for non-residential customers.
• Toilet Retrofit Rebate - Up to $100 per toilet; maximum rebate of $400 or four (4) toilets for residential and non-residential customers.
• Whole-home Water Monitoring System Rebate - fifty (50) percent of the cost of the system up to $200 for residential and non-residential customers.
Notification and Outreach Efforts
This information will be available on CRconserve.com and promoted through Community Relations’ outreach avenues, such as Facebook, Twitter, Town Talk, and press releases.
Discussion
The original Water Conservation Master Plan (WCMP) was adopted in 2006 with an overall goal of achieving a water savings of 18% (165 to 135 gallons per capita per day) through various programs. The Castle Rock community, with the help of the Castle Rock Water team, has exceeded this goal. In 2015, the Water Resources / Conservation Division of Castle Rock Water updated this document as the new Water Efficiency Master Plan (WEMP) which received approval from the Colorado Water Conservation Board (CWCB) in February 2016. The WEMP set a goal for per capita water use to 100 Gallons Per Capita Per Day (GPCD) by 2055. Progress on GPCD water use since 2015 when the WEMP was published is shown in the Figure below.
The figure indicates excellent progress over the last twelve years with per capita water use going as low as 112 GPCD. Ongoing water conservation and efficiency efforts are required in order to continue reductions achieved and meet our future goal of 100 GPCD. The WEMP is due to be updated in 2022.
One way Castle Rock Water continues to work toward sustaining and building on the conservation goals outlined in the original WCMP and the new WEMP is by offering water efficiency rebates to the community. The WEMP calls for evaluating options to update and expand this rebate program.
After evaluation of the 2021 program, staff is recommending a reduction of the maximum rebate amount for the smart irrigation controller rebate program. We will continue to offer a 50% rebate, with the maximum rebate amount reduced from $300.00 to $200.00. With reductions in retail pricing, this will have a minimal impact to our rebate participants. Additionally, we are proposing an increase in the minimum square foot required from 250 square feet to 400 square feet (or the entire front yard for exposure) for the residential ColoradoScape renovation rebate. Analysis of water consumption data indicates smaller retrofit projects are not producing desired results. Staff is also recommending an increase from $1.10 to $1.20 per square foot for residential (maximum rebate amount up to $1,800.00) and non-residential (maximum rebate amount up to $18,000.00) ColoradoScape rebate participants. We hope to encourage increased levels of participation and help to offset rising labor and material costs.
The most popular rebates are the smart irrigation controller and the residential ColoradoScape renovation. Smart irrigation controllers have seen the largest gain in popularity primarily due to improvements in technology, reduced costs, ease of use, and availability. Turf reduction through the ColoradoScape renovation rebate continues to be the most effective. 2013 through 2019 data indicates a 17% water savings on residential accounts and 2018 through 2019 data indicates a 29% water savings on non-residential accounts. The rebate program undergoes continuous evaluation and adjustments are recommended as needed. See figure below.
Overall funding for the 2022 rebate incentive program is proposed at the same level as in 2021.
Budget Impact
The 2022 program will continue to be funded from revenue generated during 2021 watering restriction violations and a portion of funds from the Block 4 surcharge rate. The average revenues generated and estimated costs for the violations program are shown on Attachment B. The total proposed rebate amount for 2022 is $145,000, which based on 2021 violations and Block 4 surcharge revenues will cover the program.
Attachment C summarizes the rebate activity for the previous three years, and sets the starting point for the current year program.
Staff Recommendation
Castle Rock Water staff recommends approval of the 2022 Conservation Rebate Incentive Program.
Proposed Motion
“I move to recommend to Town Council approval of ___________________ as presented”
Attachments
Attachment A: Resolution (Not Attached)
Attachment B: Rebates vs Surcharge Violation Revenues
Attachment C: Funding Summary